IPO Watch: Constellation sets course for the stars with 70pc ASX debut
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Constellation Resources made a stellar ASX debut on Monday after completing a $7 million initial public offering.
The stock (ASX:CR1) started trading at 12.30pm AEST and quickly hit an intraday high of 34c — a 70 per cent jump on its 20c issue price.
By the day’s end 2.6 million of the stock’s 35 million shares had changed hands for $838,000.
It closed at 30.5c — up 52 per cent on the IPO price.
Constellation was spun out of Apollo Minerals (ASX:AON) earlier this year with its Fraser Range nickel, copper and gold projects.
The Fraser Range region in Western Australia shot to fame back in 2012 when Sirius Resources uncovered the Nova-Bollinger nickel, copper and cobalt mine that eventually sold to larger rival Independence Group (ASX:IGO) for $1.8 billion.
Apollo wanted to maximise the potential of its non-European assets given its strong focus on the Couflens tungsten project in France and the Aurenere tungsten and gold project in Spain.
Late to check in
Base metals explorer Tempus Resources was also due to list on the local bourse today following the completion of a $5 million IPO.
However, it is has not yet formally been admitted to the “Official List”.
The company is acquiring a 90 per cent interest in Montejinni Resources, which owns the Montejinni project in the Northern Territory and the Claypan Dam project in South Australia.
Both projects are believed to be prospective for copper as well as other minerals such as zinc, nickel and rare earths.
Investors getting on board
Spain-focused gold explorer Black Dragon Gold has already got the investors flocking in and has so far secured commitments for more than the minimum $4 million of its up to $6 million IPO.
The company opened the offer to the public early last week and is aiming to list in early August.
At the helm of Black Dragon is Paul Cronin – the man who oversaw the successful listing in April of Bosnian base metals play Adriatic Metals (ASX: ADT), which is currently trading at more than double its IPO price.
Black Dragon is already listed on the TSX Venture Exchange (TSX-V:BDG) but wants to “cash in” on the better understanding and appreciation of ASX investors.
Mr Cronin told Stockhead earlier in July that the UK-based company plans to drop its Toronto stockmarket listing after it joins the ASX.
Black Dragon owns the Salave gold project in northern Spain that already has a resource of 6.5 million tonnes at 4.5 grams per tonne for 944,000 contained ounces of gold.
The company says the current resource makes Salave one of the biggest undeveloped gold projects in Europe.